MIRA INFORM REPORT
|
Report Date : |
05.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUKHOTHAI
CREATION CO., LTD. |
|
|
|
|
Registered Office : |
Room D, 36th Floor, Gems Tower, 1249/214 Charoenkrung Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
20.11.2002 |
|
|
|
|
Com. Reg. No.: |
0105545122965 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
IMPORTER
AND DISTRIBUTOR OF DIAMONDS AND GEMSTONES. |
|
|
|
|
No. of Employees : |
1 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed
infrastructure, a free-enterprise economy, generally pro-investment policies, and
strong export industries, Thailand achieved steady growth due largely to
industrial and agriculture exports - mostly electronics, agricultural Commodities,
automobiles and parts, and processed foods. Unemployment, at less than 1% of
the labor force, stands as one of the lowest levels in the world, which puts
upward pressure on wages in some industries. Thailand also attracts nearly 2.5
million migrant workers from neighboring countries. The Thai government in 2013
implemented a nation-wide 300 baht ($10) per day minimum wage policy and
deployed new tax reforms designed to lower rates on middle-income earners. The
Thai economy has weathered internal and external economic shocks in recent
years. The global economic recession severely cut Thailand's exports, with most
sectors experiencing double-digit drops. In late 2011 Thailand's recovery was
interrupted by historic flooding in the industrial areas in Bangkok and its
five surrounding provinces, crippling the manufacturing sector. The government
approved flood mitigation projects worth $11.7 billion, which were started in
2012, to prevent similar economic damage, and an additional $75 billion for
infrastructure over the following seven years. This was expected to lead to an
economic upsurge but growth has remained slow, in part due to ongoing political
unrest and resulting uncertainties. Spending on infrastructure will require
re-approval once a new government is seated.
|
Source
: CIA |
Company
Name
SUKHOTHAI CREATION CO., LTD.
SUMMARY
BUSINESS ADDRESS : ROOM D, 36th FLOOR,
GEMS TOWER,
1249/214 CHAROENKRUNG
ROAD, SURIYAWONGSE, BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2267-4632,
2233-4950
FAX :
[66] 2267-4632
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2002
REGISTRATION NO. : 0105545122965 [Former
: 10254501157]
TAX ID NO. : 3030733405
CAPITAL REGISTERED
: BHT.
5,000,000
CAPITAL PAID-UP
: BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAJESH KUMAR
JAIN, INDIAN
MANAGING DIRECTOR
NO. OF STAFF
: 1
LINES OF
BUSINESS : DIAMONDS AND
GEMSTONES
IMPORTER AND
DISTRIBUTOR
CORPORATE
PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject
was established on November
20, 2002 as
a private limited
company under the name
style SUKHOTHAI CREATION
CO., LTD., by
Thai and Indian
investor, with the
objective is engaged in
jewelry business. It
currently employs 1 staff.
The subject’s
registered address is Room D, 36th Flr., Gems Tower, 1249/214 Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE
BOARD OF DIRECTOR
Mr. Rajesh
Kumar Jain
AUTHORIZED
PERSON
The
above director signs
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Rajesh Kumar
Jain is the
Managing Director.
He
is Indian nationality
with the age
of 36 years old.
BUSINESS
OPERATIONS
The
subject is engaged
in importing and
distributing diamonds and
gemstones for jewelry
production.
PURCHASE
The products
are purchased from
suppliers in both
domestic and overseas,
mainly India and
Hong Kong.
SALES [LOCAL]
The
products are sold
locally by wholesale and
retail to traders,
manufacturers and end-users.
SUBSIDIARY
AND AFFILIATED COMPANY
The
subject is not
found to have any subsidiary
or affiliated company
here in Thailand.
LITIGATION
Bankruptcy and
Receivership
There
are no litigation
on bankruptcy and
receivership cases filed
against the subject
found at Legal
Execution Department for
the past five
years.
Others
There
are no legal
suits filed against
the subject according
to the past
two years.
CREDIT
Sales
are by cash
or on the
credits term of
30-60 days.
Local
bills are paid
by cash or
on the credits
term of 30-60 days.
Imports
are by T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
[Jewelry Trade
Center Branch : 919/554
Surasak Road, Silom,
Bangrak, Bangkok]
EMPLOYMENT
The subject currently
employ 1 staff.
LOCATION
DETAILS
The premise
is rented for
administrative office at
the heading address.
Premise is located
in a prime commercial
area.
COMMENT
The subject was
formed in 2002 as
an importer, distributor
and exporter of diamond
and jewelry products.
The subject had
moderate business in
the year 2013,
meanwhile its business
is relatively slow
from decline consumption
and shrinking purchasing
power in domestic
market.
FINANCIAL
INFORMATION
The capital was
registered at Bht. 2,000,000
divided into 20,000 shares
of Bht. 100 each
with fully paid.
The capital was
increased later as
follows:
Bht. 4,000,000
on April 18,
2006
Bht. 6,000,000
on January 11,
2007
On October
11, 2013, the
registered capital was
decreased to Bht.
5,000,000 divided into
50,000 shares of
Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
[As
at April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Rajesh Kumar
Jain Nationality: Indian Address
: 1249/241 Charoenkrung Road,
Suriyawongse, Bangrak,
Bangkok |
15,000 |
30.00 |
|
Mr. Charan Anantawong Nationality: Thai Address
: 49/94 Moo 5, Petchkasem
Road, Laksong, Nongkaem, Bangkok |
7,500 |
15.00 |
|
Mr.
Supakorn Nam-on Nationality: Thai Address
: 28 Moo
7, Buengsamphan, Petchabun |
7,500 |
15.00 |
|
Mr. Mongkol Kongkisanakul Nationality: Thai Address
: 95 Praengnara
Road, Sarnchaoporsua, Phranakorn, Bangkok |
5,500 |
11.00 |
|
Mr. Rajeev Sharma Nationality: Indian Address
: 1249/241 Charoenkrung Road,
Suriyawongse, Bangrak,
Bangkok |
5,000 |
10.00 |
|
Mr.
Jarungsak Anantawong Nationality: Thai Address
: 272 Moo 4,
Prachauthis Road, Bangmod, Thungkru, Bangkok |
5,000 |
10.00 |
|
Mrs. Amita Jain Nationality: Indian Address
: 1249/241 Charoenkrung Road,
Suriyawongse, Bangrak,
Bangkok |
4,500 |
9.00 |
Total Shareholders
: 7
Share
Structure [as at
April 30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
25,500 |
51.00 |
|
Foreign-Indian |
3 |
24,500 |
49.00 |
|
Total |
7 |
50,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Wasana
Tanmongkol No. 1888
BALANCE
SHEET [BAHT]
The
latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash
and Cash Equivalents |
103,894.22 |
625,352.61 |
1,076,946.96 |
|
Trade
Accounts & Other
Receivable |
32,876,708.92 |
6,677,583.13 |
20,469,326.95 |
|
Inventories |
16,123,465.86 |
4,798,386.99 |
4,048,630.02 |
|
Other
Current Assets |
697,294.06 |
5,846,113.34 |
3,747,015.48 |
|
|
|
|
|
|
Total Current
Assets |
49,801,363.06 |
17,947,436.07 |
29,341,919.41 |
|
|
|
|
|
|
Office
Automation |
15,481.06 |
14,314.56 |
21,945.01 |
|
Total Assets
|
49,816,844.12 |
17,961,750.63 |
29,363,864.42 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade
Accounts & Other Payable
|
37,690,074.08 |
8,375,641.21 |
19,972,541.42 |
|
Payable Loans |
4,180,000.00 |
- |
- |
|
Other
Current Liabilities |
196,073.07 |
205,391.57 |
269,375.00 |
|
|
|
|
|
|
Total Current
Liabilities |
42,066,147.15 |
8,581,032.78 |
20,241,916.42 |
|
Total Liabilities |
42,066,147.15 |
8,581,032.78 |
20,241,916.42 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 100 par
value
authorized, issued and
fully paid
share capital 50,000
shares in 2013;
60,000 shares in
2012 & 2011 |
5,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
|
|
|
|
|
Capital
Paid |
5,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Retained Earning - Unappropriated |
2,750,696.97 |
3,380,717.85 |
3,121,948.00 |
|
Total Shareholders' Equity |
7,750,696.97 |
9,380,717.85 |
9,121,948.00 |
|
Total Liabilities & Shareholders' Equity |
49,816,844.12 |
17,961,750.63 |
29,363,864.42 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales
Income |
32,377,475.94 |
12,554,037.89 |
18,564,845.37 |
|
Other
Income |
2,976.51 |
76,517.35 |
90,736.98 |
|
Total Revenues
|
32,380,452.45 |
12,630,555.24 |
18,655,582.35 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost
of Goods Sold &
Service |
30,770,420.41 |
9,330,009.93 |
13,489,293.33 |
|
Selling
and Administrative Expenses |
2,123,122.29 |
2,909,402.69 |
4,611,438.57 |
|
Loss
on Exchange Rate |
51,548.76 |
22,302.03 |
- |
|
Financial Costs |
12,683.38 |
7,508.58 |
17,429.23 |
|
Total Expenses |
32,957,774.84 |
12,269,223.23 |
18,118,161.13 |
|
Profit / [Loss] before
Income Tax |
[577,322.39] |
361,332.01 |
537,421.22 |
|
Income
Tax |
[52,698.49] |
[102,562.16] |
[187,735.18] |
|
|
|
|
|
|
Net Profit / [Loss] |
[630,020.88] |
258,769.85 |
349,686.04 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.18 |
2.09 |
1.45 |
|
QUICK RATIO |
TIMES |
0.78 |
0.85 |
1.06 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2,091.43 |
877.01 |
845.97 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.65 |
0.70 |
0.63 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
191.26 |
187.72 |
109.55 |
|
INVENTORY TURNOVER |
TIMES |
1.91 |
1.94 |
3.33 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
370.63 |
194.15 |
402.44 |
|
RECEIVABLES TURNOVER |
TIMES |
0.98 |
1.88 |
0.91 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
447.08 |
327.66 |
540.43 |
|
CASH CONVERSION CYCLE |
DAYS |
114.80 |
54.20 |
(28.43) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.04 |
74.32 |
72.66 |
|
SELLING & ADMINISTRATION |
% |
6.56 |
23.18 |
24.84 |
|
INTEREST |
% |
0.04 |
0.06 |
0.09 |
|
GROSS PROFIT MARGIN |
% |
4.97 |
26.29 |
27.83 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.78) |
2.88 |
2.89 |
|
NET PROFIT MARGIN |
% |
(1.95) |
2.06 |
1.88 |
|
RETURN ON EQUITY |
% |
(8.13) |
2.76 |
3.83 |
|
RETURN ON ASSET |
% |
(1.26) |
1.44 |
1.19 |
|
EARNING PER SHARE |
BAHT |
(12.60) |
4.31 |
5.83 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.84 |
0.48 |
0.69 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.43 |
0.91 |
2.22 |
|
TIME INTEREST EARNED |
TIMES |
(45.52) |
48.12 |
30.83 |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
157.90 |
(32.38) |
|
|
OPERATING PROFIT |
% |
(259.78) |
(32.77) |
|
|
NET PROFIT |
% |
(343.47) |
(26.00) |
|
|
FIXED ASSETS |
% |
8.15 |
(34.77) |
|
|
TOTAL ASSETS |
% |
177.35 |
(38.83) |
|
ANNUAL
GROWTH: SATISFACTORY
An annual sales growth is 157.9%. Turnover
has increased from THB
PROFITABILITY
: ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.97 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
(1.95) |
Deteriorated |
Industrial Average |
0.58 |
|
Return on Assets |
(1.26) |
Deteriorated |
Industrial Average |
3.55 |
|
Return on Equity |
(8.13) |
Deteriorated |
Industrial Average |
14.14 |
Gross Profit Margin used to assess a firm's
financial health by revealing the proportion of money left over from revenues
after accounting for the cost of goods sold. Gross profit margin serves as the
source for paying additional expenses and future savings. The company’s figure
is 4.97%. When compared with the industry average, the ratio of the company was
higher, indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the
company's efficiency in that net profit takes into consideration all expenses
of the company. A low profit margin indicates a low margin of safety, higher
risk that a decline in sales will erase profits and result in a net loss. The
company's figure is -1.95%. When compared with the industry average, the ratio
of the company was lower.
Return on Assets measures how efficiently
profits are being generated from the assets employed in the business when compared
with the ratios of firms in a similar business. A low ratio in comparison with
industry averages indicates an inefficient use of business assets. When
compared with the industry average, it
was lower, the company's figure is -1.26%.
Return on Equity indicates how profitable a
company is by comparing its net income to its average shareholders' equity, ROE
measures how much the shareholders earned for their investment in the company.
When compared with the industry average, it was lower, the company's figure is
-8.13%.
Trend
of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY
: RISKY
LIQUIDITY
RATIO
|
Current Ratio |
1.18 |
Acceptable |
Industrial Average |
1.60 |
|
Quick Ratio |
0.78 |
|
|
|
|
Cash Conversion Cycle |
114.80 |
|
|
|
The Current Ratio is to ascertain whether a company's
short-term assets are readily available to pay off its short-term liabilities.
The company's figure is 1.18 times in 2013, decreased from 2.09 times, then it
is generally considered to have good short-term financial strength. When
compared with the industry average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator
that further refines the current ratio by measuring the amount of the most
liquid current assets there are to cover current liabilities. The company's
figure is 0.78 times in 2013, decreased from 0.85 times, then the company has
not enough current assets that presumably can be quickly converted to cash for
pay financial obligations.
The Cash Conversion Cycle measures the
number of days a company's cash is tied up in the production and sales process
of its operations and the benefit from payment terms from its creditors. It
meant the company could survive when no cash inflow was received from sale for
115 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: RISKY
LEVERAGE
RATIO
|
Debt Ratio |
0.84 |
Acceptable |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
5.43 |
Risky |
Industrial Average |
2.73 |
|
Times Interest Earned |
(45.52) |
Risky |
Industrial Average |
- |
Debt to Equity Ratio a measurement of how
much suppliers, lenders, creditors and obligors have committed to the company versus
what the shareholders have committed. A higher the percentage means that the
company is using less equity and has stronger leverage position.
Times Interest Earned measuring a company's
ability to meet its debt obligations. Ratio is -45.52 lower than 1, so the
company is not generating enough cash from
EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a
company's assets which are financed through debt. The company's figure is 0.84
greater than 0.5, most of the company's assets are financed through debt.
Trend
of the average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY
: ACCEPTABLE
ACTIVITY
RATIO
|
Fixed Assets Turnover |
2,091.43 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.65 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion Period |
191.26 |
|
|
|
|
Inventory Turnover |
1.91 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
370.63 |
|
|
|
|
Receivables Turnover |
0.98 |
Deteriorated |
Industrial Average |
8.23 |
|
Payables Conversion Period |
447.08 |
|
|
|
The company's Account Receivable Ratio is
calculated as 0.98 and
Inventory Turnover in Days Ratio indicates
the liquidity of inventory. It estimates the number of days that it will take
to sell the current inventory. Inventory is particularly sensitive to change in
business activities. The inventory turnover in days has increased from 188 days
at the end of 2012 to 191 days at the end of 2013. This represents a negative
trend. And Inventory turnover has decreased from 1.94 times in year 2012 to
1.91 times in year 2013.
The company's Total Asset Turnover is
calculated as 0.65 times and 0.7 times in 2013 and 2012 respectively. This
ratio is determined by dividing total assets into total sales turnover. The
ratio measures the activity of the assets and the ability of the firm to
generate sales through the use of the assets.
Trend
of the average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.98.06 |
|
Euro |
1 |
Rs.76.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
NB |
New Business |
-- |
|
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major sections
of this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.